Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value

The following table presents the fair value hierarchy as of September 30, 2011, for assets and liabilities measured at fair value:

September 30, 2011	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at Fair Value
Assets
Cash equivalents:
Money market funds	$	5	$	—	$	—	$	5
Commercial paper		—		678		—		678
Total cash equivalents		5		678		—		683
Investments segregated and on deposit for regulatory purposes:
U.S. Government securities		—		1,950		—		1,950
Certificates of deposit		—		2,589		—		2,589
Corporate debt securities		—		1,527		—		1,527
Total investments segregated and on deposit for regulatory purposes		—		6,066		—		6,066
Other securities owned:
Schwab Funds® money market funds		131		—		—		131
Equity and bond mutual funds		176		—		—		176
State and municipal debt obligations		—		59		—		59
Equity, U.S. Government and corporate debt, and other securities		51		31		—		82
Total other securities owned		358		90		—		448
Securities available for sale:
U.S. agency residential mortgage-backed securities		—		17,724		—		17,724
Non-agency residential mortgage-backed securities		—		1,034		—		1,034
Corporate debt securities		—		3,012		—		3,012
U.S. agency notes		—		2,268		—		2,268
Certificates of deposit		—		2,101		—		2,101
Asset-backed and other securities		—		2,823		—		2,823
Total securities available for sale		—		28,962		—		28,962
Total	$	363	$	35,796	$	—	$	36,159
Liabilities
Securities sold, not yet purchased (1)	$	31	$	4	$	—	$	35

⁽¹⁾  Securities sold, not yet purchased are included in accrued expenses and other liabilities.

The following table presents the fair value hierarchy as of December 31, 2010, for assets measured at fair value. Liabilities recorded at fair value as of December 31, 2010, are not material, and therefore are not included in the following table:

		$000000000		$000000000		$000000000		$000000000
December 31, 2010	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at Fair Value
Assets
Cash equivalents:
Money market funds	$	988	$	—	$	—	$	988
Commercial paper		—		242		—		242
Total cash equivalents		988		242		—		1,230
Investments segregated and on deposit for regulatory purposes:
U.S. Government securities		—		3,190		—		3,190
Certificates of deposit		—		2,201		—		2,201
Corporate debt securities		—		1,704		—		1,704
Total investments segregated and on deposit for regulatory purposes		—		7,095		—		7,095
Other securities owned:
Schwab Funds® money market funds		172		—		—		172
Equity and bond mutual funds		99		—		—		99
State and municipal debt obligations		—		47		—		47
Equity, U.S. Government and corporate debt, and other securities		1		18		—		19
Total other securities owned		272		65		—		337
Securities available for sale:
U.S. agency residential mortgage-backed securities		—		13,098		—		13,098
Non-agency residential mortgage-backed securities		—		1,470		—		1,470
Corporate debt securities		—		2,268		—		2,268
Asset-backed securities		—		2,502		—		2,502
U.S. agency notes		—		2,780		—		2,780
Certificates of deposit		—		1,875		—		1,875
Total securities available for sale		—		23,993		—		23,993
Total	$	1,260	$	31,395	$	—	$	32,655

Fair Value Estimates for Financial Instruments Excluding Short Term Financial Assets and Liabilities and Financial Instruments Recorded at Fair Value

The table below presents the Company’s fair value estimates for financial instruments excluding short-term financial assets and liabilities, for which carrying amounts approximate fair value, and excluding financial instruments recorded at fair value.

	September 30, 2011				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Assets:
Securities held to maturity	$	15,775	$	16,298	$	17,762	$	17,848
Loans to banking clients – net	$	9,700	$	9,341	$	8,725	$	8,469
Loans held for sale	$	84	$	88	$	185	$	194
Financial Liabilities:
Long-term debt	$	2,002	$	2,146	$	2,006	$	2,116